Does the Beem Light Sauna franchise agreement discuss a Brand Fund?

According to the 2025 Beem Light Sauna Franchise Disclosure Document, Section 7.2 discusses a Brand Fund. Beem Light Sauna may establish a Brand Fund, but they are not obligated to do so. If established, this fund would be a segregated or independent fund where all Brand Fund Fees are paid. Beem Light Sauna states that in no event will they be deemed a fiduciary.

Brand Funds, also known as advertising funds, are commonly used in franchising to pool franchisee contributions for marketing and advertising efforts that benefit the entire brand. These funds are typically used to promote the brand at a national or regional level, which can increase brand awareness and attract more customers to individual franchise locations.

However, the FDD indicates that Beem Light Sauna is not obligated to establish a Brand Fund, which means franchisees may not have the benefit of a collective advertising effort. Additionally, the statement that Beem Light Sauna will not be deemed a fiduciary regarding the Brand Fund could have implications for how the fund is managed and used. A fiduciary duty typically requires the franchisor to act in the best interests of the franchisees when managing the fund. Prospective franchisees should seek clarification on how the Brand Fund will be managed and what protections are in place to ensure the funds are used effectively and in their best interests.